The introduction of a VAT domestic reverse charge for building and construction has been delayed by 12 months and will now be implemented on 1 October 2020.

The delay is due to the concerns raised by industry representatives and recognises that some businesses in the construction sector need more time to implement the new reverse charge. As this is close to the date the UK is due to exit the EU and to help these businesses by giving them additional time to prepare, the introduction of the reverse charge will be delayed.

To help businesses get ready in the next 12 months, HMRC say they will continue to work closely with the construction sector to raise awareness and provide additional guidance and support to ensure all businesses will be ready for the new implementation date.